Experts say it's only going to get worse. AAA predicts the price of regular unleaded gas will climb as high as $3.75 per gallon by July 1. Tom Kloza, chief oil analyst at the Oil Price Information Service in Lakewood, N.J., said he believes local prices could peak anywhere from $3.50 to $3.75.
A key predictor is the price that investors pay for crude-oil futures. On Wednesday, they closed above $100 per barrel for the first time in history. Seasonal changes also forecast increases. Gas prices normally start climbing in March, when oil refineries begin switching to their summer blends - federally mandated mixes that cause less pollution but are costlier to make.
So what's driving crude-oil prices skyward? Not supply and demand, although the U.S. Department of Energy said there are more refinery problems at the moment than expected.
Kloza identified three key causes: fear, greed and a fundamental change in who's investing. Hedge funds and other alternative-investment funds are speculating more than ever on commodities such as gold and oil. Kloza likened the broadening of the futures marketplace to that of the stock market, which used to be off limits to all but institutional investors and the wealthiest individuals.
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http://www.sptimes.com/2008/02/22/Business/Gas_prices__bad_to_wo.shtml